Executive Decision-Making
• Lack of structure: Many of the decisions made by executives are relatively unstructured .For instance, what general direction should the company take? Or what type of advertising campaign will best promote the new product line? These type of decisions are not as clear-cut as deciding how to debug a computer program or how to deal with an overdue account balance.
• High degree of uncertainty: Executives work in a decision space that is often characterized by a lack of precedent. For example, when the Arab oil embargo hit in the mid-1970s, no such previous event could be referenced for advice. Executives also work in a decision space where results are not scientifically predictable from actions.
• Future orientation: Strategic-planning decisions are made in order to shape future events. Some key questions about the future include: "How will future technologies affect what the company is currently doing?" What will the competition (or the government) do next? What products will consumers demand five years from now? Where will the economy move next, how might that affect consumer buying patterns?"
• Informal sources: Executives, more than other types of managers rely heavily on informal source for key information. For example, lunch with a colleague in another firm.
• Lack of structure: Many of the decisions made by executives are relatively unstructured .For instance, what general direction should the company take? Or what type of advertising campaign will best promote the new product line? These type of decisions are not as clear-cut as deciding how to debug a computer program or how to deal with an overdue account balance.
• High degree of uncertainty: Executives work in a decision space that is often characterized by a lack of precedent. For example, when the Arab oil embargo hit in the mid-1970s, no such previous event could be referenced for advice. Executives also work in a decision space where results are not scientifically predictable from actions.
• Future orientation: Strategic-planning decisions are made in order to shape future events. Some key questions about the future include: "How will future technologies affect what the company is currently doing?" What will the competition (or the government) do next? What products will consumers demand five years from now? Where will the economy move next, how might that affect consumer buying patterns?"
• Informal sources: Executives, more than other types of managers rely heavily on informal source for key information. For example, lunch with a colleague in another firm.
